Models for Trade Related Private Sector Partnerships for Development Symposium on Private Sector Partnerships in International Trade Development Projects November 14-15, 2012 Based on a preliminary research report written by Shannon Kindornay and Kate Higgins with Michael Olender Governance for Equitable Growth program, The North- South Institute
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Models for Trade Related Private Sector Partnerships for Development Symposium on Private Sector Partnerships in International Trade Development Projects.
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Models for Trade Related Private Sector Partnerships for Development
Symposium onPrivate Sector Partnerships in International Trade
Development ProjectsNovember 14-15, 2012
Based on a preliminary research report written by Shannon Kindornay and Kate Higgins with Michael Olender Governance for Equitable Growth program, The North-South
Institute
Presentation Outline
• Introduction
• Main Findings
• Models of Trade Related Private Sector Partnerships
• Comparing Models
• Lessons Learned and Key Challenges
• Cross-cutting Themes
• Conclusions
Introduction
• Context– Aid for trade– Private sector and development
– Geographic composition• Africa – 17 projects• Latin America – 4 projects• Global Initiatives – 4 projects• Asia – 3 projects• Caribbean – 2 projects
Comparing Models
•Funding Strategies
•Key Activities
•Role of Private Sector Partners
•Development and Commercial Results
Comparing Models• Funding Strategies
– Donor-led • minimum funding matching requirements• private sector eligibility requirements vary • maximum cap on donor contribution levels
– Coalition• funded by public and private sector partners• different funding mechanisms (fee structure,
matching funds)• aim of decreasing reliance on public funds over time
– Other models
Comparing Models
• Key Activities• Improving quality (26 projects)
• Improving productivity (all projects)
• Training or technical support (all projects)
• Improved business models (23 projects)
• Added value explicitly targeted (13 projects)
• Fair trade, organic or other certification (20 projects)
• Services or programming beyond improving export capacities (15 projects)
Comparing Models • Role of Private Sector Partners – mixed
- Funders- Buyers- Implementing partner
• expertise • training activities• extension services
- Governance (coalition)- Establishment and promotion of industry
standards
Comparing Models
• Development and Commercial Results
- Hybrid model for sustainable development?- Commercial results lacking / sensitive- Quantitative development results for outputs- Qualitative development results available - Improved capacity as transformational for project
participants
Lessons Learned and Key Challenges• Risk
– Innovation versus risk– External factors matter: individual personalities,
human capacity, market fluctuations, etc. – Getting the incentives right
• Private sector partners– Benefits vary depending on the partner (large,
small, domestic, foreign, etc.)– Getting the ‘right people’ around the table
Lessons Learned and Key Challenges• Replication and Scaling Up
– Different models amenable to replication and/or scaling up
• Donor-led candidate for both depending on success• Coalition models more amenable to scaling up rather
than replication
– Balance visibility with support for broader coalitions– Remaining models more ad hoc but likely to
continue and grow given increase in socially conscious consumers and declining aid budgets
Cross-cutting Themes
• Which market-based approach?
– Mainstream market transformation (6 projects)• Do not necessarily make use of premiums• Seek to create consumer/industry demand• Holistic approach• Critical mass needed for success
Cross-cutting Themes
• Which market-based approach? – Niche markets (5 projects)
• Benefits to smaller groups• Demand for fair trade and organic certified projects
growing• May not be about fundamental changes to core